December 8th, 2010
PARIS: Dynamic business activity in Asia should push the global value of stock market flotations to more than 300 billion dollars (227 billion euros) this year, exceeding the record in 2007, a study showed on Wednesday. In the first 11 months of the year the amount of money raised by 1,199 initial public offerings (IPOs) was 255 billion dollars. The total for the year is on track to exceed the record value of 295 billion dollars raised in 2007, the study by consultants Ernst & Young estimated.
Follow up:Source: The Financial Times
The analysis focused on three huge flotations this year that accounted for one quarter of all the money raised.
These were the flotation of Agricultural Bank of China, the Asian branch of US insurer AIG , AIA and the rebirth of General Motors in the United States.
A further 82 flotations were due to occur in December, raising a total of at least 16.9 billion dollars.
Nearly two thirds of the total amount raised was attracted by flotations in Asia.
From January to the end of November, flotations on Asian markets had raised the unprecedented total of 164 billion dollars, compared with a previous record in the region of 98 billion dollars in 2006.
The study said that investors globally had used low interest rates on developed markets and readily available cash to benefit from growth in Asia and on other emerging markets.